You are here

Implementation considerations for defensive strategies: A look at three approaches

Recent market turbulence has refocused attention on the potential long-term benefits of defensive investment strategies. In this new paper, we take an in-depth look at three such approaches: Low Volatility Factor (LVF), Minimum Variance (Min Var) and Equal Risk Contribution (ERC). While similar in their use of risk measures to reduce the risk of the portfolio, these strategies have very distinct objectives, portfolio construction methodologies, exposures and investment outcomes.

Read this research to learn more about these important differences and what investors need to know to choose the defensive approach that best suits their investment needs, or watch Mark Barnes, PhD, Head of Research NA, provide his perspective on the employment of defensive strategies with Laura Blows, Editor, European Pensions.

Legal

"FTSE Russell" is a trading name of FTSE International Limited (“FTSE”) and Frank Russell Company (“Russell”) and their respective subsidiary undertakings, which are members of the London Stock Exchange Group plc group.

FTSE International Limited is a limited liability company registered in England and Wales under registered number 03108236 with its registered office at 10 Paternoster Square, London, England, EC4M 7LS. FTSE International Limited is authorized and regulated by the Financial Conduct Authority as a benchmark administrator. Frank Russell Company is a Washington corporation with offices at 1201 Third Avenue, Seattle, Washington 98101.

You are now leaving www.ftserussell.com

You are now leaving www.ftserussell.com to access a third party website. The link to the third party website has been provided for information purposes only and inclusion of this link does not imply any endorsement or approval from FTSE Russell. FTSE Russell shall not be responsible for the accuracy, lawfulness or content of any third party website or of subsequent links and does not make any representation whatsoever about the content of any third party website. FTSE Russell does not accept any liability, of any kind, to any person arising as a result of any loss or damage or indirectly from the use of any content on such third party website or subsequent links.